Quantitative Risk Analysis

The Petroleum, Chemicals & Energy Practice has been helping its clients make the best possible strategic and tactical decisions by combining our broad, cross-disciplinary knowledge base of technology and the business environment with powerful quantitative tools such as Monte Carlo simulation models, decision analysis models, and real options models. We help our clients make the best decisions, despite high levels of uncertainty, at each level of the business development process.

Protecting the value of a project (coming in on time and on budget) involves dealing with the risk and uncertainty that will be associated with project delivery.

The role of project management is to assist in turning uncertain events and efforts into certain outcomes and promises. A primary process associated with project management should be that of risk identification and risk management.

Our project risk management process is based on five steps:

Risk management planning

Risk identification

Qualitative risk analysis/quantitative risk analysis

Risk response planning

Risk monitoring, control, and response

By following these steps, we are able to manage the uncertainty inherent in projects.

With our strategy development and decision analysis services, our goal is to capture all reasonably possible values of the assets or projects that the strategy is covering. We work closely with the client to build simple cash flow models of the corporate assets portfolio to help clients develop and refine a sound corporate strategy. This allows a valuable “What if?” analysis, as well as portfolio optimization and adjustment.